Cheapest gas and electricity tariff UK (July 2026)

If you want the cheapest price

Get a quote using your postcode and annual usage (or an estimate). Then compare the projected annual cost and key terms.

If you want the least hassle

Prioritise tariffs with no exit fee, straightforward monthly direct debit, and clear customer service ratings — even if they’re not the absolute cheapest.

Two numbers that usually decide “cheapest”

• Standing charge (p/day): matters most for low users.
• Unit rate (p/kWh): matters most for high users.

When “cheapest” can be misleading

• Prices shown for a different region than yours.
• Tariff requires smart meter or specific payment type.
• Introductory offers end and revert to higher rates.
• Exit fees make switching again costly.

Scenario A: Low-use flat (standing charge dominates)

Assumptions: 1–2 bed flat, monthly direct debit, single-rate electricity. Annual use: 1,800 kWh electricity and 6,000 kWh gas.

Even though Tariff 2 has lower unit rates, Tariff 1 can work out cheaper for low usage because the standing charges add up.

Scenario B: Family home (unit rates dominate)

Assumptions: 3–4 bed house, monthly direct debit, single-rate electricity. Annual use: 4,200 kWh electricity and 14,000 kWh gas.

For higher usage, the lower unit rates in Tariff 2 can outweigh the higher standing charges.

Often suits you if…

• You can pay by monthly direct debit.
• You’re happy with online bills and managing your account digitally.
• You’re not planning to move soon (or the tariff allows moving without penalty).
• You can provide reasonably accurate usage.

May not suit you if…

• You have a prepayment meter and limited tariff choice.
• You’re in supplier debt and can’t switch easily (rules vary).
• You need paper billing or prefer paying on receipt.
• You’re on Economy 7 and can’t shift usage to off-peak.

1) Exit fees and contract length

A fixed tariff may have exit fees per fuel. If you leave early (including to re-fix at a better rate), those fees can reduce or erase the benefit.

2) Payment method differences

Many of the cheapest tariffs assume monthly direct debit. Paying on receipt, cash/cheque, or other methods can cost more.

3) Meter type restrictions

Some tariffs require a working smart meter, Economy 7 compatibility, or don’t accept prepayment customers. Always confirm eligibility.

4) Standing charge shocks

Two tariffs can have similar unit rates but very different standing charges. This is especially important for low usage homes and second homes.

5) Intro offers and one-off credits

A joining credit can help, but check whether it’s conditional (e.g., after X months) and whether the ongoing rates remain competitive.

6) Moving home or tenancy changes

Some fixed deals allow you to take the tariff with you; others may require a new contract. If you rent, flexibility can be more valuable than a small price difference.

1) Is the cheapest tariff always a dual fuel deal?

Not always. Dual fuel can be convenient and sometimes cheaper, but separate gas and electricity suppliers can occasionally work out less overall. The only reliable way to know is to compare estimated annual costs for both approaches.

2) What if I don’t know my kWh usage?

You can still compare using an estimate (e.g., property size, occupants), but treat the result as a shortlist. Once your supplier confirms actual usage, the “cheapest” ranking can change, especially if standing charges differ.

3) Can I switch if I have a prepayment (PAYG) meter?

Often yes, but your tariff choice may be smaller and prices can differ. If you owe money to your current supplier, switching can be restricted. It’s worth comparing options specifically for prepayment.

4) Are smart meter tariffs cheaper?

Some can be, especially time-of-use tariffs if you can shift consumption to cheaper hours. But smart tariffs can also have higher peak rates. Always check the full rate structure and whether a smart meter is required and working in smart mode.

5) Will switching affect my credit score?

Most standard switches don’t affect your credit score in a meaningful way, but suppliers may run checks for some payment types. If you’re concerned, look for options that don’t require a credit check (availability varies).

6) What happens to my supply when I switch?

Your gas and electricity won’t be interrupted. Switching is administrative. You’ll provide meter readings around the switch date (or readings are taken automatically for smart meters) to create a final bill.

7) Is a fixed tariff always safer?

Fixed tariffs offer price certainty for the contract term, but they can include exit fees and may prevent you benefiting quickly if prices fall. “Safer” depends on your priorities: stability vs flexibility.

8) Why are prices different by postcode?

Electricity distribution charges and some regional cost factors vary across Great Britain, which can change standing charges and unit rates. That’s why a national “cheapest tariff” headline can be misleading.

Page ownership

• Written by: EnergyPlus Editorial Team
• Reviewed by: Energy Specialist
• Last updated: July 2026

How we assess “cheapest”

On EnergyPlus, “cheapest” refers to the lowest estimated annual cost for a household, calculated using:

• Your postcode (regional pricing and network costs)
• Your meter type (single-rate, Economy 7, smart, prepay)
• Payment method (e.g., monthly direct debit vs other)
• Estimated consumption (kWh) for gas and electricity
• Standing charges and unit rates across both fuels

Assumptions and limitations (important)

• Prices change frequently: results can differ day to day.
• Estimated costs depend on kWh inputs: if your usage differs, the cheapest tariff may change.
• Eligibility matters: some tariffs require smart meters, online billing, or have regional availability limits.
• We don’t guarantee savings: any saving depends on your current tariff, usage, and future price changes.

Independent sources we use

• Ofgem (UK energy regulator)
• Citizens Advice: energy
• GOV.UK (government services and guidance)